The government of India has assured that it would continue to support the constructions of three hydropower projects despite the cost escalation. The assurance was made by the additional secretary of the ministry of external affairs of India, Binoy Kumar, as he visited the Mangdichu Hydroelectric Project in Trongsa yesterday.
“We always have to depend on the geological factors and these surprises will be there,” he said, adding that there was nothing to worry and should be taken as it comes.
“As far as MHPA is concerned the geological surprises are not that serious, we will still be able to manage the works.
“We are committed for these three projects so whatever will be the requirements we will meet it. In such huge projects there will be revision of cost. If there is increase in the cost we will have to meet and we will meet that, government of India is determined to see it that it is done,” he added.
The initial cost of the Mangdichu Hydroelectric Project in 2008 was Nu. 28,960 million. The cost has now escalated to Nu. 41,000 million, which is an increase of about 40% percent.
The MHPA officials said the cost escalation was mainly due to increase in the cost of the construction materials.
Meanwhile, when asked about financing other projects in future; “You know there will be more projects in pipeline coming up, so as time progresses we will keep on taking it in a suitable format, for the government of India as well as the government of Bhutan, so we will take it up in the best interest of both the countries.”
The construction of the Mangdichuchhu Hydroelectric Project is expected to complete by September 2017.
